Press Release | Krasnodar | October 31, 2018

PJSC "Magnit" Announces the Decisions of the Board

Krasnodar, Russia (October 31, 2018): Magnit PJSC (MOEX and LSE: MGNT; Company, Group), one of Russia's leading retailers, announces the decisions of the Board of Directors taken on the meeting held on October 30, 2018.

The Board has made a decision to call Extraordinary General Meeting. Among other Items, the agenda will include the consideration of the preliminary dividend payment in January 2019, based on the 9M 2018 financial results. The Board has recommended to pay dividends on PJSC "Magnit" shares in the amount of 14,000,581,949.90 Rubles which constitutes 137.38 Rubles per one ordinary share, and set December 21, 2018 as a dividend record date.

The Board has discussed the key principles of investment and financial policies of PJSC "Magnit" and requested the management to provide more detailed analysis of certain policy aspects.

The Board has considered the dividend policy and agreed to the proposal to make dividend payments twice a year. The management shall provide the updated version of the dividend policy together with the investment and financial policies at the next Board meeting.

The management updated the Board of Directors on the transformation strategy execution, including developing new CVP for main store formats, changes to the operations management model, customer engagement communication strategy, private label programme upgrades, category management optimisation, the logistics strategy as well as other key strategic projects. The Board also considered 9M and 3Q 2018 results of PJSC "Magnit" and its subsidiaries presented by the management and acknowledged the positive trend in like-for-like growth resulting from CVP improvement, better category management and more efficient promo activity as well as higher efficiency of new stores opened this year, supported by higher sales density in the new stores compared to the existing store base.

In line with its strategy of further enhancing the Company's internal controls, the Board approved the Company's internal audit charter that provides for its internal controls framework and sets forth the principal objectives and functions of internal control function. As a result, the Company now has a fully functional internal control department.

Please follow the link below to read full text of the Board decisions:

http://ir.magnit.com/en/press-releases/reg-filings_2018/

For further information, please contact:

Petr Molchanov    Alisa Kvadzba   

Chief Investment Officer  IR manager   

Email: Molchanov_ps@magnit.ruEmail: magnitIR@magnit.ru 

Office: +7-861-277-4554 x 45000              Office: +7-861-277-4554 x 17601

Note to editors:

Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of June 30, 2018, Magnit operated 37 distribution centers and 16,960 stores (12,503 convenience, 244 hypermarkets, 213 supermarkets and 4,000 drogerie stores) in 2,808 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the reviewed IFRS consolidated financial statements for 1H 2018, Magnit had revenues of RUB 595 billion and an EBITDA of RUB 44 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB.